Meta, the parent company of Facebook and Instagram, agreed to a record $1.4 billion settlement with Texas on Tuesday, over allegations that it had illegally collected facial recognition information on millions of users in violation of state law.
Meta violated Texas state privacy laws by automatically tagging users’ faces on its site, according to a suit filed in 2022. The agreement is the largest privacy settlement by a U.S. state, said Texas’ attorney general, Ken Paxton.
“This historic settlement demonstrates our commitment to standing up to the world’s biggest technology companies and holding them accountable for breaking the law and violating Texans’ privacy rights,” Paxton said in a statement. The suit covered the collection of data from millions of state residents. “Any abuse of Texans’ sensitive data will be met with the full force of the law,” he added.
States have become increasingly aggressive in adopting and enforcing privacy laws, particularly in the absence of a federal privacy law. Texas, Illinois and Washington have biometric privacy laws that curb the collection of facial, voice and other biometric data.
Texas’ law, called Capture or Use of Biometric Identifier, requires companies to ask permission before using features like facial or voice recognition technologies. The law allows the state to impose damages of up to $25,000 per violation.
Texas sued Meta over its use of a feature called “tag suggestions” that allowed users to tag individuals in photos. The tool, which was introduced in 2011, used facial recognition software and was automatically turned on for users in violation of Texas’ law requiring companies to first seek permission, according to the state’s allegations.
Meta did not admit to any wrongdoing in the settlement.
“We are pleased to resolve this matter, and look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers,” a Meta spokesman said in a statement.
Meta said it no longer used the “tag suggestions” feature.
Texas has also sued Google for allegedly violating the same biometric privacy law. The state has claimed Google collected voice and facial data through products like its home device, Nest.
Cecilia Kang is a reporter with The New York Times. Copyright, 2024, The New York Times.
